- Ethereum trades at $2,556, with a bullish flag forming and $2,700 as key resistance.
- Analysts project it could hit $3,030–$4,035 if it breaks the 200-day moving average.
- Ethereum network activity surged—TVL rose 44% to $65.3B, and daily transactions jumped 37%.
Ethereum is showing signs of fresh momentum, and some analysts believe the digital asset could be on track for a major price rally. On May 23, crypto analyst Jonathan Carter pointed to a bullish flag pattern forming just above a recently broken broadening wedge. He noted that Ethereum could climb if it breaks key resistance.
It is currently trading around $2,556 and is approaching the 200-day moving average near $2,700. Carter identified this is a critical level, and a confirmed breakout above it could signal the start of renewed buying. The area between $2,400 and $2,700 is currently witnessing heavy activity, acting as a zone where bulls and bears are fighting for control.
Volume data shows strong engagement in this price range. If it clears the 200-day average, Carter sees it pushing first to $3,030, then to $3,500, and possibly to $4,035—a gain of 57% from the current level. He added that the RSI, a momentum signal, remains below overbought levels, leaving room for continued upward moves.
Key Levels Shape Ethereum’s Path
Another analyst, Captain Faibik, echoed similar views, stating that bulls are struggling to reclaim the 200-day simple moving average at $2,700. If they manage to do so, he expects Ethereum to surge past $3,500 in the short term. He believes this resistance level will play a critical role in the coming days.
Michael van de Poppe added his view in a May 23 post, stressing that it must hold its $2,400 support level to improve the odds of climbing toward higher targets. If this support holds, further upward momentum could come into play, he said.
At the same time, its network activity is showing major increases. Daily transactions have jumped by 37% over the past 30 days, matching activity levels last seen in January 2024. At that time, excitement around U.S.-based spot Bitcoin ETF approvals helped drive its price above $4,000 for the first time in more than two years.
Ethereum Network Demand Points to Growth
Ethereum’s daily average fees also spiked recently, reaching 0.0005 ETH (around $1.33) on May 22. This marks the highest fee level in the past 90 days. Such increases often reflect growing user activity and confidence in the market. Activity around NFTs, DeFi, and other applications is likely contributing to the rise.
Historically, heavy usage periods have aligned with price gains. During the DeFi boom of 2021, average fees climbed to 0.015 ETH as demand surged. This pattern shows how increased demand for gas can push Ethereum prices up.
Another strong signal comes from the total value locked in Ethereum smart contracts. The TVL climbed to $65.3 billion on May 23, up from $45.26 billion on April 22. That’s a 44% increase in just under a month. It reflects renewed trust and involvement in Ethereum-based protocols.
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